US-China relations a factor to watch this week

This isn't something that is quite on the agenda but be mindful of the headlines in case we see China retaliates in some form to what it believes is US provocation over Taiwan. US House speaker, Nancy Pelosi, is to begin her Asia tour this week and the itinerary does not mention a visit to Taiwan.

However, local sources are saying that she should be arriving in Taipei tomorrow night:

It is a factor to watch for markets in case risk sentiment takes a hit depending on what kind of responses we will see from both the US and Chinese camps.